A judge in the Sean Dunne bankruptcy case in Connecticut has granted a motion by Ulster Bank and the bankruptcy trustee, and has dismissed the concerns of Mr Dunne.
Before the court was a decision on whether it would allow a joint or dual bankruptcy between Ireland and the US.
Mr Dunne filed for bankruptcy in the US, saying he had debts of $1bn and assets of only $55m.
Ulster Bank and the National Asset Management Agency want him to be made bankrupt in Ireland.
Their argument was that virtually all of the assets and creditors are in Ireland. They say Mr Dunne only has $976 to his name in the US.
The judge sided with Ulster Bank and NAMA and granted the order.
The Irish bankruptcy court will have a hearing on the matter on 1 July.
That will allow lawyers to serve papers on Mr Dunne. The case will then be negotiated between Ireland and the US.